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Why Do We Care About Money?

Updated: Jan 5, 2022

We, humans, spend so much time worrying and pursuing money. It is an important factor in our lives if you'd like it or not, but we could altogether forget to live a happy life this way. The book we cover in this article, The Psychology of Money explores the strange ways people think about money.

Here on MentalCurve, we're all about traumas, mechanisms, and illusions inside our minds. Recently, I came across this book with an interesting take on money. To respect the author, I won't use too many of the words from his book in this article. Although, I don't think a blog post or a simple google search can ever do this book justice.

Why do we care so much about money?

Unless we are born into riches and never have to lift a finger to live a comfortable life, we all have to struggle to come by financially. The current generation is getting more and more obsessed with the idea of becoming financially free. On social media, influencers are trying to convince you to buy their course to get infinite wealth. Why are they working on selling their course when they're supposedly financially free themselves?

We often have a negative relationship with money due to experiencing a sense of powerlessness. Most people feel like their money controls them, instead of them being in control of their money.

Even if the concept of money is a good or bad thing for society, money represents freedom of choice. It delivers comfort, and above all, it represents time, and time is the most precious thing we have. We spent time doing the things we have to do and what we want to do. The more money we have, the less time we spend doing what we have to do.

People who are working in the creative field can earn money with the things they want to do. However, this is a bit of a grey area. To make a profit this way, you'll need to spend a lot of time advertising, and that time will most certainly fall into the "have to do" category.

Money gives us opportunities. It allows us to have experiences that we would not be able to have if we didn't have money. Money enables us to travel to more places, experience more activities, and meet different sorts of people. Money allows us to escape from certain discomforts, such as living more conveniently, getting medical treatments, and avoid someone who brings pressure to our mental state.

''One needs to balance short-term and long-term aspirations, both with the material and nonmaterial mind.''

The idea of an endless amount of wealth brings images of glamour and luxury that the advertising world puts in front of us. People take pride in giving the impression that they are wealthy by surrounding themselves with the trappings of a luxurious lifestyle. It might cause many individuals to believe that money is a negative thing and prioritizing money is incorrect. But if money represents time, and you only have so much, what could be more valuable, besides happiness itself?

The Psychology of Money Book

It's not always about knowledge when it comes to money. It's about how you behave. Even for the most intelligent people, behavior is hard to teach. People do not make financial decisions based on a spreadsheet in the real world. They make decisions based on their personal history, worldviews, ego, pride, marketing, and strange incentives.

Morgan Housel, an award-winning author, presents 19 short stories in The Psychology of Money that explore the unusual ways individuals think about money. He shows you how to make sense of one of life's most essential issues.

"Saving is income minus ego, and happiness results minus expectations."

This book is a read for especially the youngsters. Read this early in life, and you'll avoid problems later in life. Don't get trapped in the illusions from others and the illusion of money itself. In less than 200 pages, he explains why we humans care so much about money and how to use it as a tool for happiness.

''Individual wealth is what you don't see because it's hidden within.''

This book is not your typical how-to invest your money book. It's about how you identify with money, about the reasons why you want more, what makes you spend it, what you expect to feel, and how you can plan for the future. The approach is not to calculate but to understand human psychology.

Housel advocates a complete change of mindset. In his book, he delivers a way to control what, when, and how to do it. You need to learn what's enough for you and restrict your spending from there. According to studies, when you reach a certain standard of living, spending more money brings you very little extra happiness. It's the opposite of what Instagram is trying to face us by encouraging constant comparisons.

I became a huge fan, and this is, without a doubt, his best work to date. It is a work of art.

For the ones who are interested in the Psychology of Money book, you can click here.